Rising world prices for agricultural products have accelerated inflation in Ukraine

Published 2021년 1월 6일

Tridge summary

The National Bank of Ukraine's December review reports an improvement in the external situation, despite the pandemic and lockdowns, driven by the vaccination efforts and optimism in the financial markets. Grain prices remain high due to increased demand and forecasted poor yields in Latin America, with some countries imposing export restrictions. The completion of the US election and expectations of fiscal stimulus and continued monetary incentives have led to a strengthening of currencies in emerging markets. However, consumer inflation in Ukraine accelerated in November 2020, driven by rising global oil prices and lower sunflower yields, leading to higher prices for sunflower oil and related products. Despite this, prices for clothing and footwear continued to decline due to changes in consumer behavior caused by remote work and study. The production index of basic industries in Ukraine increased by 3.3% year on year in November, leading to a resumption of high growth rates in agriculture.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In December, despite the deteriorating epidemic situation and the introduction of lockdown in some countries, the external situation improved significantly due to the recovery in the industry against the background of optimism associated with the start of vaccination against COVID-19 in some countries. This was reported in the December macroeconomic and monetary review of the National Bank of Ukraine. "Grain prices have remained high due to high demand, deteriorating yield forecasts in Latin America and the announcement of export restrictions by some countries. In global financial markets, interest in risky assets has grown rapidly due to the completion of the US election process, expectations of new fiscal stimulus in the US and the continuation of monetary incentives from the Fed and the ECB. As a result, most of the currencies of EM countries (developing countries - Landlord) strengthened against the US dollar, "- said in a review. At the same time, according to the bank, in ...

Source: Landlord